The net financial value (NFV) of the national economy at the end of March 2025 is negative and amounts to -100.0 billion lei, down from -91.1 billion lei recorded a year earlier. Thus, the national economy remains a net debtor to the rest of the world.
This is essentially what would be left if all assets were liquidated and debts were repaid. If the BSF is positive, the country has a net financial value; if it is negative, it has a net financial liability. More broadly, it is the total value of all financial assets (money, securities, investments) minus all financial liabilities (loans, debts).
The dynamics in the first quarter of 2025 was driven by a more pronounced increase in the volume of liabilities (+1.1% compared to the end of 2024) compared to the growth of assets (+0.2%), cites the NBM ratio. However, this ratio is not equal in all sectors of the economy.
The largest negative impact on the change in the net financial value of the national economy this year was made by the household sector (-4.6 p.p.), whose growth in liabilities since the beginning of the year amounted to 7.6%. The net financial value of the sector decreased by 1.8%, amounting to 227.8 billion lei.
Nevertheless, households continue to be net creditors of the national economy. And the sectors of non-financial corporations, financial corporations and the public administration sector, as in previous years, are in the position of net debtor to households.
The debts of public administration (from -28.5 billion lei to -24.1 billion lei), financial companies (to -18.2 billion lei) have slightly decreased since the beginning of the year. Non-financial companies are still the biggest debtors – their BSF is at -285.5 billion lei and is only increasing.
The ratio of the NFC of the national economy, recorded at the end of the first quarter of 2025, to GDP decreased by 2.3 p.p. in annual terms and amounted to -30.4%. The ratio of a country’s domestic debt to the rest of the world to GDP reflects the economy’s ability to service its debt obligations. A lower ratio may indicate a lower risk of default.
